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PC targets 10 per cent GDP growth through agriculture
Kotak sells stake in Hutch Essar for Rs 1,019 cr
PSU oil firms unshackled
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Aviation turbine fuel cheaper
New Delhi, March 1 Public sector oil firms today cut jet fuel (aviation turbine fuel) prices by less than a percentage point after raising it twice in the last two months.
Tatas’ notice to Birla, to buy out Idea
Investment panel for contract labour
PNB to open account in UK, Canada
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Corporate News
Windows XP Starter Edition launched
Indica, Baleno prices cut
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PC targets 10 per cent GDP growth through agriculture
New Delhi, March 1 Assuring the industry of taking care of all its problems to achieve 12 per cent growth in the manufacturing sector, he reiterated the government’s commitment to follow the economic reforms path, including legislation on reforms in the insurance and pension sector in the Budget session of Parliament. “We talk of a 10 per cent growth rate. Unless agriculture grows at 4 per cent, whatever combination and permutation we may try, we can not attain 10 per cent growth,” he told the captains of Indian industry in his customary post-Budget meeting with apex chambers. Setting a target of 12 per cent growth for the manufacturing sector, Mr Chidambaram has invited trade and industry for a meeting on May 1 to remove fiscal obstacles that came in the way of the target. Of course, he said the 10 per cent growth requires industry and services to grow at a double-digit figure. “These issues could be addressed. I want the manufacturing to grow at 12 per cent. Let me make an open offer. Take time and meet me on May 1. All chambers can make a list of what stands between you and 12 per cent growth and we shall address them,” he said. About the demand of chambers for bringing agriculture income into the tax net, Mr Chidambaram said there was no constitutional provision as it was a state subject. But the other income of the rural rich was being taxed. The Budget has focused on food processing, petrochemicals and chemicals, IT, power, coal, shipping and petroleum sectors, he said. The Finance Minister said the Budget proposal to raise the FII limit in corporate bonds from $0.5 billion to $1.5 billion would make the raising of funds by the industry much easier. On economic reforms, he said: “By and large there is consensus on the pension legislation. There are some issues. We are trying to sort it out.” The Standing Committee on Finance has already studied the insurance Bill, he said, and the Left parties have only objected about raising the foreign investment cap from 26 per cent to 49 per cent. The Bill will seek to address these issues, besides other reforms in the insurance sector. On disinvestment, he said, it was on track and to begin with a small portion of equity in two PSUs - Power Finance Corporation and National Mineral Development Council - would be divested. The Budget 2006-07 has provided for garnering Rs 3,084 crore from disinvestment, which would be put in the National Investment Fund. As far as sick PSUs were concerned, the government would either close or sell these down as mentioned in the National common minimum programme, he said.
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Kotak sells stake in Hutch Essar for Rs 1,019 cr
Mumbai, March 1 The sale consideration is on the basis of an underlying value of about $6 billion for Hutchisson Essar, adjusted for debt and preference share liabilities in the companies, which hold shares of HEL, Kotak Mahindra said. The bank’s consolidated share of the pre-tax profit on such sale is Rs 392 crore for the 3.19 per cent effective economic interest in HEL, it said. “We were one of the early investors in the Indian telecom sector and take immense pride in the development of Hutchisson Essar Ltd as one of the leading telecom companies in India. We have enjoyed a very fruitful association with Hutchisson and Hutchison Essar and wish them success in future, “Kotak Mahindra Executive Vice- Chairman and Managing Director Uday Kotak said.
— PTI
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New Delhi, March 1 Mr Aiyar, as petroleum minister, had wanted to pack boards of oil firms particularly India’s top oil producer Oil and Natural Gas Corp (ONGC) and its overseas subsidiary ONGC Videsh Ltd with more government directors to have a greater say in the operation of these companies. Petroleum Secretary M.S. Srinivasan last month issued orders restricting number of government directors to just two on Boards of all oil firms under his ministry, industry sources said. Instead of four directors envisaged by Mr Aiyar on ONGC’s Board, the new dispensation would have only Additional Secretaries of Ministry of Petroleum and Natural Gas and Department of Economic Affairs representing for Government’s 74 per cent stake in the company. Mr Aiyar wanted three directors from his ministry and one from DEA on ONGC board. OVL would now have Petroleum Ministry’s Additional Secretary (International Cooperation) and a Joint Secretary from Department of Economic Affairs instead of three directors (all from Petroleum Ministry) put by Mr Aiyar. Sources said the three oil ministry directors each on Boards of refiner IndianOil Corp (IOC), gas firm GAIL (India) Ltd and exploration firm Oil India Ltd (OIL) would be replaced by just two nominees. While IOC and GAIL would have ministry’s Additional Secretary and Joint Secretary & Financial Advisor, OIL would get Joint Secretary (Exploration) and a Joint Advisor from Petroleum Ministry. — PTI
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New Delhi, March 1 ATF price for domestic airlines (who have to pay sales tax) in Delhi was cut by Rs 233.63 per kilolitre to Rs 34,995.36, while the decrease in Mumbai was Rs 256.88 per kl to Rs 35,957.79, industry sources said. Jet fuel accounts for as much as 30 per cent of the cost of operations for airlines in India. For international airlines, who are exempted from paying sales tax, the drop in ATF prices would be $6.55 (to $604.67 per kl) in Delhi and in Mumbai $6.74 (to $595.98) per kl. Meanwhile, national flag carrier Air-India (A-I) has commenced hedging its jet fuel price risk by entering into derivatives contract on international commodity markets for the first time last week. Considering that the cost of jet fuel constitutes almost 30 per cent of its total operating costs, A-I decided to proactively manage this risk using a combination of derivative instruments such as jet fuel swaps, options and collars. The A-Is fuel bill in the last fiscal was Rs 2,200 crore, with 55 per cent of its fuel requirement being uplifted overseas. Prices of jet fuel have been extremely volatile during the last few years, exposing A-I, like other airlines, to significant fuel price risk. — Agencies
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Tatas’ notice to Birla, to buy out Idea
New Delhi, March 1 In the notice served on A.V. Birla group’s flagship company, Grasim Industries Limited, Tata Industries Ltd (TIL) said: “We hereby put you to notice that by disclosing the financial data of Idea Cellular (ICL) to Aditya Birla Nuvo Ltd’s investors, ABNL has caused a material breach of the ICL Shareholder’s Agreement (SHA).” The Tatas have contended that since the confidential information has been posted on the website and is already in the public domain and leaked to third parties, the material breach is far from being cure According to the Tatas’ notice, ABNL has disclosed the information pertaining to ICL in terms of its revenue, PBDIT, OPM, Net Profit/Loss, capital employed, annualised Return on capital employed and projects. Idea Cellular is a closely held company and does not disclose its quarterly financial data to the public and it does not make any public disclosures or statutory filings in respect of such quarterly financial data, the Tatas said. Birlas’ rebuttal
A.V. Birla Group today informed the government that there was “no iota of substance” in the termination notice served on them by Tatas on their joint venture Idea Cellular and dubbed it as “an attempt to divert the attention” from real issues. Responding to a notice served earlier this week by Tata Industries saying they would proceed to purchase the equity of the AV Birla group within 90 days, Aditya Birla Nuvo Ltd shot off a letter to Department of Telecom questioning the substance of the notice, sources in the know said. In a brief communication to the DoT Secretary, Birlas, who hold about 51 per cent equity in the joint venture, referred to media reports about the notice and said that the timing of it (notice) tells a different story.
— PTI
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Investment panel for contract labour
New Delhi, March 1 The commission, which was constituted by Prime Minister Manmohan Singh to recommend policies to step up the rate of investment in India, today presented its report to the Prime Minister. “ The government should provide labour flexibility by removing the requirement of state government approval from Chapter V-B and permitting contract labour in all areas,” said the commission in its report. It noted inflexible labour laws, investment restrictions and entry route barriers in several sectors as the major impediments to higher investment in India, besides absence of long-term policies, non-implementation and breach of contract as hurdles in growth. Expressing concern over the bureaucratic delay in FDI sanction, the commission said it led to high cost of entry, transactions and exit, besides ineffective dispute resolution.
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PNB to open account in UK, Canada
Chandigarh, March 1 This was disclosed by Chairman and Managing Director of PNB S C Gupta during an interview with The Tribune here today. He said that he recently visited Singapore and Hong Kong to meet officials in the host countries, and work out formalities for setting up these overseas branches at the earliest. “We are the largest public sector bank, with 4525 branches and 454 extension counters all over the country. It is now time for the bank to eye overseas markets,” he added. Mr Gupta informed TNS that he was confident that the two FOBUs and subsidiaries would be operational within the next eight months. “We already have our representative offices in London, Shanghai (China), Dubai and Kazakhstan, and all these representative offices will be converted into subsidiaries by March 2007,” he said, while adding that PNB also held a 20 per cent equity and total management in the Everest Bank of Nepal. On the bank’s role in extending more farm credit, the Chairman of PNB said that the bank was already extending 18.96 per cent of total credit as direct agriculture credit.
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Corporate News
Hong Kong, March 1 The company, also the most aggressive investor in European third-generation telecom, also said that it was eyeing Spain as a potential market for expansion but has not made any decision. In India, the group’s Hutchison Telecommunications International Ltd. unit has been aiming since last year to list its majority-held Hutchison Essar arm. Part of the delay resulted from the wait for regulatory clarification on how much a foreign company can own in an Indian carrier. “I think there is every intention for us to go IPO, subject to market conditions. This year will be a safe bet,” Hutchison Whampoa Managing Director Canning Fok said. As for Spain, Hutchison has in the past held talks for a stake in 3G licence holder Xfera, the Spanish firm’s shareholder ACS said last May. Morgan Stanley
Morgan Stanley’s real estate investment arm has invested about $68 million in Indian property developer Mantri Developers Private Ltd. in its first foray into the fast-growing market, the firm said on Wednesday. India eased rules on foreign investment in its property sector early last year, sparking interest from several US funds and firms eager to tap a booming economy where a growing middle class demands new homes, shops and offices. But many investors have been hesitant, wanting to see others test India’s legendary red tape before they take the plunge. Indian firms are keen for foreign partnerships because they want finance and expertise to expand from their regional bases to become national players.
Pidilite stake
Leading adhesive manufacturer Pidilite Industries Ltd’s Singapore-based subsidiary has acquired a 75 stake in Bamco Ltd, a manufacturer of waterproofing products and protective coatings. The wholly owned subsidiary, Pidilite International Pte Ltd, acquired the stake in Thailand-based Bamco on February 27, Pidilite informed the Bombay Stock Exchange.
Satyam eyes China
As part of its plan to set up a large development centre in China, city-based IT major Satyam Computer Services Ltd will set up its operations in Guangzhou. “Satyam has plans to increase its presence in China. The setting up of our operations centre, though in a small manner, is the first step before we set up a large development centre in China,” Satyam Corporate Headquarters Senior Vice-President V. Murali said in a press note today. An agreement to set up the operations centre was signed by Satyam Managing Director B Rama Raju and Guazgzhou Mayor Zhang Guanging in Bangalore, the note said. Being one of the first Indian firms to enter China, Satyam currently has over 250 associates across Shanghai, Dallan and Beijing, it added.
— Agencies
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Windows XP Starter Edition launched
New Delhi, March 1 The new product provides English and a local language interface to Microsoft’s low-cost operating system to increase relevance for Indian customers Also launched were, Works 8, an entry level applications suite, to help first time users derive greater value from their PC. Partners such as Intel, HCL, AMD and BSNL pledge support vendors will now be able to develop low cost PCs using Intel Celeron and AMD Sempron and Duron processors. HCL will launch desktops and notebook PCs with the new products. HCL PCs will be available at attractive EMIs starting Rs 399, and include broadband connectivity from BSNL and MTNL Quick Heal Anti-Virus and education content from Edurite will provide consumers with a secure and content-rich PC experience.
— UNI
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Indica, Baleno prices cut
New Delhi, March 1 Following cut in prices of small cars, Maruti has cut the price of its premium sedan Baleno by Rs 8,000 with immediate effect.
— PTI
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Chandigarh, March 1
